June 23: Ops & correspondent jobs; TRID training; FHA & VA changes & new information

Today I head to Kansas, where turnpike and highway safety is paramount. I am all for saving lives on the highways, and for just like everything else information is critical. Check out this photo of what we may see in the future.


And for information on the job market, Ditech Mortgage Corp is expanding in Ft. Washington, PA and downtown Jacksonville, Florida areas. “We are ditech – one of the mortgage industry’s well-known brands. We are looking for Processors, Underwriters, Call Center Loan Officers and Operations Managers to join our fast growing team. At ditech we’re building a world-class culture that promotes mobility, diversity, career growth and leadership development. In short, we’re ready to take the industry in a new direction. Come join us. Check us out at www.ditech.com.


And in a different area Carrington Mortgage is expanding its footprint “with its new state of the art Operations Center in Westfield, Indiana. We are currently looking for Funders and DE Underwriters to join our growing team!  Competitive salary plus bonus, generous vacation time and great medical/dental benefits. Please contact Carlos Fernandez (949.517.7204), in charge of Talent Acquisition.”
And on the correspondent side of the ledger, congrats to Beverly Snow. Impac Mortgage Corp. Correspondent announced the promotion of this industry veteran to Regional Director of Sales for the central region sales team. “Bev brings to Impac 20 years of Correspondent, Retail and Default mortgage experience, along with a proven track record of success in the mortgage industry, which will be invaluable in growing our central regions goals and objectives in 2015.”, said Greg Austin, SVP & National Sales Director. In fact, Impac Mortgage Corp. is looking to hire experienced Correspondent and Mini Correspondent Account Executives. Through strong B2B relationship management, sales expertise and problem solving skills our Account Executives are responsible for establishing new relationships from Delegated and Non-delegated Correspondents such as mortgage bankers, community banks and credit unions who meet Impac Mortgage Corp.’s Correspondent eligibility requirements.  If you are interested in joining Beverly in the Central Region, email your resume directly to Beverly for review or check out the position on our website.


Let’s play catch up on the latest in FHA & VA changes out there!


A recent Harvard Kennedy School study looked at the current state of the U.S. mortgage market, focusing on the controversial re-emergence of firms unaffiliated with non-depository institutions—non-banks—in the residential mortgage market. The study found non-bank lending institutions have increased their market share of agency purchase mortgage originations from 27 percent in mid-2012 to 48 percent in late 2014. “Non-bank servicers have realized equally unprecedented and drastic growth. These surges have caused alarm with politicians and policymakers, and resulted in Fannie Mae and Freddie Mac changing non-bank standards on May 20th.” In the study Marshall Lux, and Robert Greene, examine the higher-risk profile of non-banks, and find Federal Housing Administration (FHA)-insured loans are a major factor. The median FICO score of an FHA-insured non-bank borrower is 667, versus 682 for banks, and at several large non-bank originators it is below 660. Cleveland Fed research classifies this as subprime, and finds that 26 percent of recent FHA-insured loan originations were to borrowers beneath this threshold.


FHA released its Single Family Loan Quality Assessment Methodology, also known as its “loan-level defect taxonomy.” The taxonomy categorizes a spectrum of loan defects detected in Single Family FHA-endorsed loans. The taxonomy also establishes nine distinct defects, supported by codes that will identify the source and cause of the defect, and provides some indication of the significance of a given deficiency within each category. According to FHA, the taxonomy is not the final statement on all compliance and enforcement efforts, nor does it establish standards for administrative or civil enforcement actions. It also does not address FHA’s response to patterns and practice of loan-level defects, regardless of severity, or FHA’s plans to address fraud or misrepresentation in connection with FHA-insured lending. Important to note, the schedule for implementation has not yet been determined.


FHA published Mortgagee Letter 2015-15, which sets out an alternative path to claim payment, the Mortgagee Optional Election (MOE) Assignment, for mortgagees to choose for an eligible HECM with an Eligible Surviving Non-Borrowing Spouse and an FHA case number assigned prior to August 4, 2014. Under MOE, mortgagees may assign eligible HECMs to FHA, despite the HECM being otherwise eligible to be called due and payable as a result of the death of the last surviving borrower. The assignment allows eligible surviving Non-Borrowing Spouses to remain in the home. Mortgagee Letter 2015-15 replaces Mortgagee Letter 2015-03, and removes the Factor Test and Principal Limit Test requirements from the MOE Assignment option.


Hank Davis with Mortgage Compliance Advisors writes, “We have published a white paper on the FHA Handbook update that takes effect in September this year. Among other changes, some overlooked, the FHA will begin to require their clients to perform Pre Fund audits.


In that same vein, HUD published its new Single Family Handbook FAQ Preview. The more than 100-page document addresses many questions related to the new Single Family Handbook’s origination through post-closing/endorsement content. However, it does not include answers to many pressing, outstanding questions related to appraisals or quality control, oversight and compliance. Notably, HUD has indicated that more FAQ documents are slated for release throughout the summer.


Yes, FHA has made it easier to access, compare and share information in the SF handbook via HUD’s Client Information Policy Systems (HUDCLIPS) web page. The SF Handbook on the AllRegs online electronic policy platform eliminates the cumbersome use of PDF access only (PDF version of the SF Handbook will remain on HUDCLIPS until September 11). Available now, access HUD’s Online Single Family Handbook.


As a reminder HUD released its monthly newsletter, HUD Housing and FHA Monthly Review. This newsletter summarizes HUD’s single-family and multifamily policy developments back in April, including Mortgagee Letters 15-1015-11, and 15-12, which impose new requirements in the foreclosure process for home equity conversion mortgages (HECM) and expands the list of permissible loss mitigation options mortgagees may provide to HECM borrowers. The newsletter also highlights that the release of the updated consolidated Single-Family Housing Policy Handbook, originally slated for June 15, 2015, has been delayed to September 14, 2015. MBA advocated strongly for HUD to delay the effective date, based on the need for additional clarity in many sections, including the required TRID implementation in August 2015. MBA will continue to work with members to review Handbook sections and refinements as they are released.


Ditech clients should note guideline updates for conforming, FHA and VA transaction have been posted. Log into ditech website for details.



Citibank has removed its overlay on the use of Non-Traditional Credit on FHA loans. Using non-traditional credit for FHA Loans is now permitted.  FHA Loans with non-traditional credit must however adhere to the guidelines within the HUD 4155.1 and Mortgage Letter 2014-02.


Regarding FHA loans with an FHA Case Number assigned prior to August 4, 2014, view the Revised Mortgagee Optional Election Assignment for Home Equity Conversion Mortgages (HECMs) in Mortgagee Letter 2015-15‏. This Mortgagee Letter sets out an alternative path to claim payment, the Mortgagee Optional Election (MOE) Assignment, that mortgagees may choose for an eligible HECM with an Eligible Surviving Non-Borrowing Spouse and an FHA case number assigned prior to August 4, 2014.


TRID training anyone?


Directors of Lenders Compliance Group present on timely and important regulatory compliance topics. View Compliance Matters most recent broadcast by clicking the link. Compliance Matters: planning for TRID implementation part 1.


TRID Forum registrations are disappearing like hotcakes! MBA and ALTA are offering a sixth full-day workshop in Denver on June 23rd. If you are already heading to Denver on June 22, ALTA is offering a Homebuyer Outreach Education Workshop. Once the CFPB’s TILA-RESPA Integrated Disclosures go into effect in August, owner’s title insurance will be labeled as “optional” on the Loan Estimate and Closing Disclosure. Telling a consumer that owner’s title insurance is “optional” may dissuade homebuyers from purchasing the same protection that lenders receive. While this may be a challenge, it is also an opportunity for companies to contact homebuyers directly to explain how title insurance protects their investment.


Due to popular demand, MGIC has added 3 additional webinars: TRID for Real Estate Partners June 19, 22, 26. These webinars are specifically designed to be a high level overview of the upcoming changes and how to explain them to a real estate agent audience.


TRG has just launched their “Ready for It!” YouTube channel, which has a four-part training series on the upcoming CFPB changes.  The topics covered include the Loan Estimate, Closing Disclosure and tolerance levels.  This is a great resource for agents and loan officers to familiarize themselves with what’s coming October 1 (expected).  Check it out at CFPBez.com/TRG.


Are you ready for TRID? Our friends at First American Title have some pretty cool videos to help you explain these big changes to Realtors and borrowers.


Turning to the bond markets, how do you like this quote? “The Bank of Russia has responded to economic contraction by reducing the benchmark interest rate to 11.5%, the fourth decrease this year. ‘The latest studies show that a decline in inflationary expectations has slowed recently,’ said Elvira Nabiullina, head of the central bank.” That sure is a different country!


As most expected, it appears that Greece and the European Union (and European Central Bank – ECB) are heading toward a deal. Greece loves paying out those pensions, while the EU is saying, “What the heck?” Greece owes the International Monetary Fund (IMF) $1.7 billion. If they don’t pay (and they have already missed one payment), then it makes it hard for the ECB to continue providing emergency liquidity. The current program with the ECB expires in a week. And up until the last few days the rhetoric was becoming more and more heated between Germany and Greece.


As mentioned above the issue is the pensions: Greece is resisting restructuring the country’s pension system and the Germans are getting sick of it: “We will not let the German workers and their families pay for the overblown election promises of a partially communist government,’’ Vice-Chancellor Sigmar Gabriel recently wrote. If they can’t get a deal, then the ECB will probably stop supporting the Greek banks and the county will have to impose capital controls to keep hard assets from fleeing the country. Greek banks have already seen a large outflow of deposits. The bond markets are getting nervous, as the Greek 10 year bond yield is nearly at 13%. But for us in the U.S. markets, and home buyers, any sort of Greek exit will probably cause a flight to quality which means it would be bullish for US bonds. The latest proposal, which manages to avoid Greek ruling party Syriza’s red lines on cuts to pensions and VAT hikes on electricity, was received optimistically by the official creditors.


So Monday we saw the impact of that, and of news here in the states, on interest rates. The U.S. Treasury market sold off overnight on optimism over a solution (temporary or otherwise) to Greece’s debt crisis. The Greek 10-yr yield was down 145 basis points Monday morning and European bourses had rallied sharply. After better-than-expected Existing Home Sales data in the U.S., Treasuries made another leg lower and the complex finished on lows with our 10-year T-note closing at 2.36%.


Yes, we learned that Existing Home Sales increased 5.1% in May, and it was the highest number of existing homes sold in 1 month since November 2009 when 5.44 million were sold. Much of the gain came from an increase in first-time home buyers – the lifeblood of home buying demand. These buyers accounted for 32% of all sales in May. That was up from 30% in April and was the largest contribution since September 2012. All-cash sales accounted for 24% of transactions for the third straight month. Sales to individual investors remained at 14% for a second consecutive month.


For thrills & chills today we will have the always volatile Durable Goods Orders and Durable Goods ex-transportation numbers for May at 7:30AM CST, the April FHFA Housing Price Index, May’s New Home Sales numbers at 9AM CST, and a $26 billion 2-year note auction.



Here’s a little trivia to break up those monotonous jokes (part 1 of 4). And no, I did not fact-check every one of them.

A dime has 118 ridges around the edge.

A cat has 32 muscles in each ear.

A crocodile cannot stick out its tongue.

A dragonfly has a life span of 24 hours.

A goldfish has a memory span of three seconds. Reminds me of voters!

A “jiffy” is an actual unit of time for 1/100th of a second.

A shark is the only fish that can blink with both eyes.

A snail can sleep for three years.

Al Capone’s business card said he was a used furniture dealer.

All 50 states are listed across the top of the Lincoln Memorial on the back of the $5 bill.

Almonds are a member of the peach family.

An ostrich’s eye is bigger than its brain. I know some people like this.





(Copyright 2015 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)

Rob Chrisman